Section § 24200

Explanation

This section explains various reasons why a license to sell alcohol can be revoked or suspended in California. This includes actions that are harmful to public welfare or morals, violating specific laws or rules, lying on a license application, being convicted of certain crimes, or not addressing nuisance issues like noise or public drunkenness around the place of business. It outlines what 'reasonable steps' a business must take to address such nuisances, like calling law enforcement or removing items that attract loitering. Some types of businesses, like certain restaurants or hotels, have exemptions from some of these rules.

The following are the grounds that constitute a basis for the suspension or revocation of licenses:
(a)CA Business and Professions Code § 24200(a) When the continuance of a license would be contrary to public welfare or morals. However, proceedings under this subdivision are not a limitation upon the department’s authority to proceed under Section 22 of Article XX of the California Constitution.
(b)CA Business and Professions Code § 24200(b) Except as limited by Chapter 12 (commencing with Section 25000), the violation or the causing or permitting of a violation by a licensee of this division, any rules of the board adopted pursuant to Part 14 (commencing with Section 32001) of Division 2 of the Revenue and Taxation Code, any rules of the department adopted pursuant to the provisions of this division, or any other penal provisions of law of this state prohibiting or regulating the sale, exposing for sale, use, possession, giving away, adulteration, dilution, misbranding, or mislabeling of alcoholic beverages or intoxicating liquors.
(c)CA Business and Professions Code § 24200(c) The misrepresentation of a material fact by an applicant in obtaining a license.
(d)CA Business and Professions Code § 24200(d) The plea, verdict, or judgment of guilty, or the plea of nolo contendere to any public offense involving moral turpitude or under any federal law prohibiting or regulating the sale, exposing for sale, use, possession, or giving away of alcoholic beverages or intoxicating liquors or prohibiting the refilling or reuse of distilled spirits containers charged against the licensee.
(e)CA Business and Professions Code § 24200(e) Failure to take reasonable steps to correct objectionable conditions on the licensed premises, including the immediately adjacent area that is owned, leased, or rented by the licensee, that constitute a nuisance, within a reasonable time after receipt of notice to make those corrections from the department, under Section 373a of the Penal Code. For the purpose of this subdivision only, “property or premises” as used in Section 373a of the Penal Code includes the area immediately adjacent to the licensed premises that is owned, leased, or rented by the licensee.
(f)CA Business and Professions Code § 24200(f) Failure to take reasonable steps to correct objectionable conditions that occur during business hours on any public sidewalk abutting a licensed premises and constitute a nuisance, within a reasonable time after receipt of notice to correct those conditions from the department. This subdivision shall apply to a licensee only upon written notice to the licensee from the department. The department shall issue this written notice upon its own determination, or upon a request from the local law enforcement agency in whose jurisdiction the premises are located, that is supported by substantial evidence that persistent objectionable conditions are occurring on the public sidewalk abutting the licensed premises. For purposes of this subdivision:
(1)CA Business and Professions Code § 24200(f)(1) “Any public sidewalk abutting a licensed premises” means the publicly owned, pedestrian-traveled way, not more than 20 feet from the premises, that is located between a licensed premises, including any immediately adjacent area that is owned, leased, or rented by the licensee, and a public street.
(2)CA Business and Professions Code § 24200(f)(2) “Objectionable conditions that constitute a nuisance” means disturbance of the peace, public drunkenness, drinking in public, harassment of passersby, gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, or excessive loud noise.
(3)CA Business and Professions Code § 24200(f)(3) “Reasonable steps” means all of the following:
(A)CA Business and Professions Code § 24200(f)(3)(A) Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed by the department as evidence of objectionable conditions that constitute a nuisance.
(B)CA Business and Professions Code § 24200(f)(3)(B) Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feel that their personal safety would be threatened in making that request.
(C)CA Business and Professions Code § 24200(f)(3)(C) Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering.
(4)CA Business and Professions Code § 24200(f)(4) When determining what constitutes “reasonable steps,” the department shall consider site configuration constraints related to the unique circumstances of the nature of the business.
(g)CA Business and Professions Code § 24200(g) Subdivision (f) does not apply to a bona fide public eating place, as defined in Section 23038, 23038.1, or 23038.2, that is so operated by a retail on-sale licensee or on-sale beer and wine licensee; a hotel, motel, or similar lodging establishment, as defined in subdivision (b) of Section 25503.16; a winegrowers license; a licensed beer manufacturer, as defined in Section 23357; those same or contiguous premises for which a retail licensee concurrently holds an off-sale retail beer and wine license and a beer manufacturer’s license; or those same or contiguous premises at which a retail on-sale licensee or on-sale beer and wine licensee who is licensed as a bona fide public eating place as defined in Section 23038, 23038.1, or 23038.2, a hotel, motel, or similar lodging establishment as defined in subdivision (b) of Section 25503.16, a licensed beer manufacturer, as defined in Section 23357, or a winegrowers license, sells off-sale beer and wine under the licensee’s on-sale license.

Section § 24200.1

Explanation

This law states that businesses with licenses (like bars or liquor stores) can have their licenses suspended or revoked if they don't address problems around their property that disturb the peace, such as loud noise or public drunkenness. They must act within 30 days of getting official notice to fix these issues in areas directly next to their property and on nearby public sidewalks. Correcting these issues doesn't absolve their ongoing responsibility to manage them. Reasonable steps include calling the police, asking disruptive people to stop, and removing items that encourage loitering. Some businesses, like restaurants or hotels with on-sale licenses, have exemptions from sidewalk-related issues. A hearing to review violations must happen within 60 days of a formal complaint.

The following are additional bases upon which the department may suspend or revoke a license:
(a)CA Business and Professions Code § 24200.1(a) Failure to take reasonable steps to correct objectionable conditions on the licensed premises, including the immediately adjacent area that is owned, leased, or rented by the licensee, that constitute a nuisance within a reasonable time after receipt of notice to make those corrections from a district attorney, city attorney, or a county counsel, under Section 373a of the Penal Code. For the purpose of this subdivision only, “property or premises” as used in Section 373a of the Penal Code includes the area immediately adjacent to the licensed premises that is owned, leased, or rented by the licensee.
(b)CA Business and Professions Code § 24200.1(b) Failure to take reasonable steps to correct objectionable conditions that occur during business hours on any public sidewalk abutting a licensed premises and constitute a nuisance within a reasonable time after receipt of notice to correct those conditions from a district attorney, city attorney, or a county counsel. This subdivision shall apply to a licensee only upon written notice to the licensee from a district attorney, city attorney, or a county counsel.
(c)CA Business and Professions Code § 24200.1(c) Notwithstanding that the licensee corrects the objectionable conditions that constitute a nuisance, the licensee has a continuing obligation to meet the requirements of subdivisions (a) and (b), and failure to do so shall constitute grounds for disciplinary action pursuant to this section.
(d)CA Business and Professions Code § 24200.1(d) For purposes of this section:
(1)CA Business and Professions Code § 24200.1(d)(1)  “Any public sidewalk abutting a licensed premises” means the publicly owned, pedestrian-traveled way, not more than 20 feet from the premises, that is located between a licensed premises, including any immediately adjacent area that is owned, leased, or rented by the licensee, and a public street.
(2)CA Business and Professions Code § 24200.1(d)(2)  “Objectionable conditions that constitute a nuisance” means disturbance of the peace, public drunkenness, drinking in public, harassment of passersby, gambling, prostitution, loitering, public urination, lewd conduct, drug trafficking, excessive loud noise, or failure to comply with the minimum operating standards required by Section 25612.5.
(3)CA Business and Professions Code § 24200.1(d)(3)  “Reasonable steps” means all of the following:
(A)CA Business and Professions Code § 24200.1(d)(3)(A) Calling the local law enforcement agency. Timely calls to the local law enforcement agency that are placed by the licensee, or his or her agents or employees, shall not be construed by the department as evidence of objectionable conditions that constitute a nuisance.
(B)CA Business and Professions Code § 24200.1(d)(3)(B) Requesting those persons engaging in activities causing objectionable conditions to cease those activities, unless the licensee, or his or her agents or employees, feel that their personal safety would be threatened in making that request.
(C)CA Business and Professions Code § 24200.1(d)(3)(C) Making good faith efforts to remove items that facilitate loitering, such as furniture, except those structures approved or permitted by the local jurisdiction. The licensee shall not be liable for the removal of those items that facilitate loitering.
(4)CA Business and Professions Code § 24200.1(d)(4) When determining what constitutes “reasonable steps,” the department shall consider site configuration constraints related to the unique circumstances of the nature of the business.
(5)CA Business and Professions Code § 24200.1(d)(5) “Reasonable time” shall mean 30 days following service of notice pursuant to either subdivision (a) or subdivision (b) upon a licensee that objectionable conditions exist.
(e)CA Business and Professions Code § 24200.1(e) Subdivision (b) does not apply to a bona fide public eating place, as defined in Section 23038, 23038.1, or 23038.2, that is so operated by a retail on-sale licensee or on-sale beer and wine licensee; a hotel, motel, or similar lodging establishment, as defined in subdivision (b) of Section 25503.16; a winegrowers license; a licensed beer manufacturer, as defined in Section 23357; those same or contiguous premises for which a retail licensee concurrently holds an off-sale retail beer and wine license and a beer manufacturer’s license; or those same or contiguous premises at which a retail on-sale licensee or on-sale beer and wine licensee who is licensed as a bona fide public eating place as defined in Section 23038, 23038.1, or 23038.2, a hotel, motel, or similar lodging establishment as defined in subdivision (b) of Section 25503.16, a licensed beer manufacturer, as defined in Section 23357, or a winegrowers license, sells off-sale beer and wine under the licensee’s on-sale license.
(f)CA Business and Professions Code § 24200.1(f) A hearing for a violation of this section shall be held within 60 days of an accusation being filed.

Section § 24200.5

Explanation

This law requires that a license be revoked if a business with a retail license breaks certain serious rules. First, if the business knowingly allows illegal drug sales or negotiations for such sales on their property, they can lose their license. Continuous or repeated sales show evidence that the business allows it. Second, if the business lets employees or others persuade customers to buy them drinks through a profit-sharing scheme like commissions or bonuses, the license must also be revoked.

Notwithstanding the provisions of Section 24200, the department shall revoke a license upon any of the following grounds:
(a)CA Business and Professions Code § 24200.5(a) If a retail licensee has knowingly permitted the illegal sale, or negotiations for the sales, of controlled substances or dangerous drugs upon his or her licensed premises. Successive sales, or negotiations for sales, over any continuous period of time shall be deemed evidence of permission. As used in this section, “controlled substances” shall have the same meaning as is given that term in Article 1 (commencing with Section 11000) of Chapter 1 of Division 10 of the Health and Safety Code, and “dangerous drugs” shall have the same meaning as is given that term in Article 2 (commencing with Section 4015) of Chapter 9 of Division 2 of this code.
(b)CA Business and Professions Code § 24200.5(b) If the licensee has employed or permitted any persons to solicit or encourage others, directly or indirectly, to buy them drinks in the licensed premises under any commission, percentage, salary, or other profit-sharing plan, scheme, or conspiracy.

Section § 24200.6

Explanation

This law says that if a business or its workers are involved in activities related to illegal drug use, such as selling items to grow or use drugs, their business license can be taken away. The business is assumed to know these items are for drug use if they’ve been told in writing by the authorities that the items are commonly used for that purpose.

The department may revoke or suspend any license if the licensee or the agent or employee of the licensee violates any provision of Section 11364.7 of the Health and Safety Code. For purposes of this provision, a licensee, or the agent or employee of the licensee, is deemed to have knowledge that the item or items delivered, furnished, transferred, or possessed will be used to plant, propagate, cultivate, grow, harvest, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance, if the department or any other state or local law enforcement agency notifies the licensee in writing that the items, individually or in combination, are commonly sold or marketed for that purpose.

Section § 24200.7

Explanation

If someone who holds a license, or one of their employees, makes, sells, or offers powdered alcohol, their license will be taken away or put on hold.

The department shall revoke or suspend any license if the licensee or the agent or employee of the licensee manufactures, distributes, or offers for retail sale powdered alcohol.

Section § 24200.8

Explanation

This law explains that when deciding on punishment for breaking rules about giving alcohol to someone, the authorities can take into account if that action led to someone's death or major injury.

In determining the level of discipline for a violation of Section 25602 or 25658, the department may consider as a factor whether there is subsequent death or great bodily injury to the person who is sold, served, furnished, or given the alcoholic beverage, to any other person, or to both.

Section § 24201

Explanation

If someone believes a license holder is doing something wrong, they can file a written complaint with the department. The complaint needs to include reasons that could lead to suspending or revoking the person's license.

Accusations may be made to the department by any person against any licensee. Accusations shall be in writing and shall state one or more grounds which would authorize the department to suspend or revoke the license or licenses of the licensee against whom the accusation is made.

Section § 24202

Explanation

This law requires that all arrests involving businesses with specific types of licenses must be reported to the relevant department within 10 days. The department then investigates if there's a reason to suspend or revoke the license. However, the department cannot start an investigation or revoke a license just because a licensee reports suspected drug activity unless it happened with the licensee's knowledge and consent.

(a)CA Business and Professions Code § 24202(a) All state and local law enforcement agencies shall immediately notify the department of any arrests made by them for violations over which the department has jurisdiction which involve a licensee or licensed premises. Notice shall be given within 10 days of the arrest. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license or licenses of the licensee.
(b)CA Business and Professions Code § 24202(b) The department may not open or add an entry to a file or initiate an investigation of a licensee or suspend or revoke a license (1) solely because the licensee or an agent acting on behalf of the licensee has reported to a state or local law enforcement agency that suspected controlled substance violations have taken place on the licensed premises or (2) solely based on activities constituting violations described in such a report, unless the violations reported occurred with the actual knowledge and willful consent of the licensee.

Section § 24203

Explanation

Local authorities, like city councils or police chiefs, can file complaints against businesses with licenses to sell alcohol both on-site or off-site (like bars or liquor stores). If they think a license should be taken away or paused, they can ask for it. After they file a complaint, a public hearing must be held nearby to decide if the license should be suspended or revoked. If there's a claim that public health or safety is at risk, this hearing has to happen within 60 days.

Accusations against any on-sale or off-sale licensee may be filed with the department by the legislative body, or chief of police, of any city in which the premises in question are located, or if the premises are in unincorporated territory, then by the board of supervisors, or the sheriff, of the county, requesting the suspension or revocation of any retail license. Upon the filing of the accusation, the department shall provide for a public hearing thereon within the county in which the premises are located and determine whether or not the license should be revoked or suspended. Whenever the local legislative body, the chief of police, or the sheriff, certifies that the public safety, health, or welfare requires an immediate hearing of the accusation, the public hearing shall be held within 60 days after the filing of the accusation with the department.

Section § 24204

Explanation

If someone with a license to handle alcoholic drinks is found guilty of breaking the Sherman Food, Drug, and Cosmetic Law, the health department has to tell the licensing department right away. Then, the licensing department must investigate to see if there's a reason to suspend or take away that person's license.

The Director of the State Department of Public Health shall immediately notify the department of the conviction of any licensee of any violation of the Sherman Food, Drug, and Cosmetic Law in connection with alcoholic beverages. The department shall promptly cause an investigation to be made as to whether grounds exist for suspension or revocation of the license of such licensee.

Section § 24205

Explanation

If the bond for your alcoholic beverage license is canceled or becomes invalid, or if you fail to pay certain taxes related to your license, your license will be automatically suspended. However, you can have it reinstated by filing a new valid bond or paying your overdue taxes. This suspension for tax issues will only happen if you're at least three months behind on payments. If your license gets suspended, you can request a hearing with at least five days' notice.

The license of any taxpayer shall be automatically suspended upon cancellation of his or her bond, or if the bond becomes void or unenforceable for any reason, or if the taxpayer fails to pay any taxes or penalties due under the Sales and Use Tax Law (Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code), the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code), when that tax liability arises in whole or in part from the exercise of the privilege of an alcoholic beverage license, or under the Alcoholic Beverage Tax Law (Part 14 (commencing with Section 32001) of Division 2 of the Revenue and Taxation Code). The license shall be automatically reinstated if the taxpayer files a valid bond, or pays his or her delinquent taxes, as the case may be. A suspension under this section for a tax delinquency may only be imposed if the taxpayer is at least three months delinquent.
Upon the petition of any taxpayer whose license has been suspended under this section, a hearing shall be afforded him or her after five days’ notice of the time and place of hearing.

Section § 24206

Explanation

This law says that if someone is going to accuse a licensee of breaking certain alcohol-related rules, the accusation has to be made within one year. This time limit applies to a specific list of rules that deal with things like alcohol sales and licensing.

All accusations against licensees for violating or permitting the violation of Sections 24750 to 24757, inclusive, 24850 to 24881, inclusive, 25000 to 25010, inclusive, 25170 to 25238, inclusive, 25600, 25602, 25607, 25609, 25610, 25611, 25612, 25615, 25630, 25631, 25632, 25633, 25656, 25658, 25663, 25664, or 25665, shall be filed within one year.

Section § 24207

Explanation

This law states that any formal charges against license holders for breaking specific alcohol-related rules must be filed within three years. This means there's a three-year time limit to take official action if someone is accused of violating certain alcohol regulations.

All accusations against licensees for violating or permitting the violation of Sections 23300, 23355, 23431, 23453, 24200.5, 25500 to 25508, inclusive, 25601, 25616, or 25657, shall be filed within three years.

Section § 24208

Explanation

This section outlines when the time periods for possible license suspension or revocation actions begin. For a single incident, the clock starts on the date of that incident. If it's an ongoing issue or involves multiple incidents, the time starts from the last incident. If the case involves deception like fraud, it begins when the fraud is discovered. For criminal convictions, it starts once the conviction is final.

The periods of one year and three years referred to in Sections 24206 and 24207 shall commence to run as follows:
(a)CA Business and Professions Code § 24208(a) If the act or omission alleged as the basis for the suspension or revocation of the license constituted a single transaction, then from the date of the transaction.
(b)CA Business and Professions Code § 24208(b) If the act or omission alleged as the basis for the suspension or revocation of the license is of a continuing nature, relating to a condition, or if the occurrence of several acts or omissions is necessary for the institution of disciplinary proceedings, then from the date of the last act or omission.
(c)CA Business and Professions Code § 24208(c) If the act or omission alleged as the basis for the suspension or revocation of the license involved fraud, misrepresentation, or concealment, then from the date of the discovery thereof.
(d)CA Business and Professions Code § 24208(d) If the basis for the suspension or revocation of the license is a criminal conviction, then from the date such criminal conviction becomes final.

Section § 24209

Explanation

If someone is arrested for breaking rules under this division, the officer can let them go if they promise in writing to appear in court at a specific time and place. If the person arrested is a license holder or works for someone with a license, the officer must release them under the same written promise to show up in court.

When an arrest is made of any person, for a violation of this division, the arresting officer may release such person without taking such person before a magistrate upon such person’s signing an agreement to appear in court or before a magistrate at a place and time designated by the arresting officer; provided, that when an arrest is made of a licensee or employee of a licensee the arresting officer shall release such licensee or employee without taking such licensee or employee before a magistrate upon such licensee or employee signing an agreement to appear in court or before a magistrate at a place and time designated by an arresting officer.

Section § 24211

Explanation

This law allows the department to review and reduce a penalty on its own initiative before the penalty takes effect. No additional hearings or proceedings are needed for this review.

The department may on its own motion at any time before a penalty assessment is placed into effect and without any further proceedings, review the penalty, but such review shall be limited to its reduction.